Case Study On The Accounting Firm Industry Specialization From The Perspective Of Industry Chain

In recent years,the fierce competition caused by the homogenization of business between accounting firms in China has become increasingly prominent.The regulatory authorities are aware of the above issues,and the 14 th Five Year Plan released by the China Securities Depository Association emphasizes that accounting firms should shift from "becoming bigger and stronger" to "being superior,specialized,and refined".After ten years of fierce market competition,only 56 accounting firms ranked among the top100 firms in 2021 in 2011.Therefore,only expanding the scale is not an effective way to enhance competitiveness.Accounting firms should seize the strategic opportunity,reasonably plan the industry layout,optimize the allocation of human and intellectual resources of the auditor team,improve the industry concentration ratio,"refine and refine" their own business,and improve the quality of audit services.The current literature on the specialization of accounting firms in the industry mostly focuses on certain specific industries,with little attention paid to the industry chain(supply chain)relationships between the expertise of accounting firms in various industries,and research on their knowledge spillover effects.In 2022,the Ministry of Finance issued the "Measures for the Integrated Management of Accounting Firms",providing important guidance for accounting firms to strengthen internal governance and ensure the realization of industry specialization from the perspective of the industrial chain.If accounting firms form industry specialization from the perspective of the industrial chain,which shifts industry specialization from specialized agglomeration to diversified agglomeration,and can provide high-quality professional services based on the needs of the industrial chain,it is very likely to enhance the market competitiveness of accounting firms.How can accounting firms achieve industry specialization from the perspective of the industry chain? What is the effect of industry specialization from the perspective of the industrial chain? Does industry specialization from the perspective of forming an industrial chain help enhance the competitiveness of accounting firms? It is worth conducting in-depth exploration.This article takes the development of X accounting firm’s industry specialization as a case study,focusing on analyzing its experience and inspiration in achieving industry specialization development from the perspective of the industry chain.By reviewing,organizing,analyzing,and summarizing relevant literature at home and abroad,firstly,this article reviews the literature on the specialization of accounting firms in the industry,the sharing of auditors by supply chain enterprises,and the knowledge spillover of accounting firms.Based on this,it is clear that knowledge spillover theory,synergy theory,and competitive strategy theory are the basic theories,which provide important theoretical support for the case study of this article.Once again,introduce the development background and process of X accounting firm’s industry specialization from the perspective of the industrial chain,and analyze the guarantee mechanism of industry specialization from the perspective of the industrial chain.Then,the market share method,portfolio share method,and customer quantity method are comprehensively used to measure the degree of industry specialization of X accounting firm.By analyzing the industry chain(supply chain)relationship between the firm’s industry expertise,it is determined whether X accounting firm has formed industry specialization from the perspective of the industry chain.The effect of industry specialization from the perspective of industry chain is analyzed from three aspects: audit quality,audit fees,and competitiveness.Finally,summarize the experience of X Accounting Firm’s industry specialization development process from the perspective of the industry chain and propose corresponding suggestions,respectively from the perspectives of customer management,business allocation,integrated management,and information construction.The industry specialization development experience of X accounting firm may provide important insights for the current development of industry specialization in China’s large and medium-sized accounting firms from the perspective of the industry chain.For example,we should comply with policies to find segmented markets,pay attention to the integration and complementarity of industry chain knowledge,strengthen integrated management,and strengthen information construction.Through the above research,this article believes that:(1)Industry specialization from the perspective of the industrial chain needs to be achieved through guarantee mechanisms such as business resource integration,human resource integration,and digital innovation in the audit industry;(2)The formation of industry specialization from the perspective of the industrial chain helps to improve the audit quality of accounting firms and bring audit premium income;Enhance the competitiveness of accounting firms.The research in this article not only provides important supplements for the research on the specialization of the certified public accountant industry,but also provides important references for the industry specialization of large and medium-sized accounting firms in China from the perspective of the development of the industry chain.